House Passes Gulf Drilling Legislation: Oil Price Drops
Yesterday, the Republican-led United States House of Representatives passed legislation to speed up the permit process for offshore oil exploration and drilling in the Gulf of Mexico. The legislation also opens up offshore exploration off the coast of the state of Virginia. As a result, crude oil prices came tumbling down nine percent. This has average Americans hoping that this will translate to lower prices at the pump.
House member Michael Burgess (R-Texas) states, “Here we are in the Senate today, and I would just mention to the Senate that our bill yesterday to expedite lease sales in the Gulf of Mexico, those very leases that have been delayed or canceled by the administration in the past year. The fact that we're willing to expedite those lease sales had a profound effect on those people who like to speculate and hedge in the oil market.”
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The Republican majority has been claiming that reopening offshore exploration in the Gulf would affect speculators in such a way that oil prices would fall, and the dramatic drop below $100 per barrel witnessed today reveals just that.
However, the bill still faces a majority Democratic opposition in the U.S. Senate and White House. Plus, the Federal Energy Information Administration has stated that major expansion in domestic offshore development would have little impact on world oil prices or U.S. gasoline prices.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.